US President Donald Trump on Monday rejected Iran’s response to a US peace proposal as “totally unacceptable,” sending oil prices higher amid continued disruption to shipping through the Strait of Hormuz.
Trump dismissed Tehran’s counterproposal in a post on Truth Social hours after Iranian state media outlined demands that included an end to the US naval blockade, compensation for war damage, and recognition of Iranian sovereignty over the strategic waterway.
“I don’t like it — TOTALLY UNACCEPTABLE,” Trump wrote, without elaborating.
Iran’s Foreign Ministry spokesperson Esmaeil Baghaei defended the proposal, saying Tehran’s demands were legitimate and described the offer as “generous and responsible.”
“Our demand is legitimate: demanding an end to the war, lifting the blockade and releasing Iranian assets,” Baghaei said.
Oil prices rose more than 3.5% on Monday as the diplomatic impasse heightened concerns that the Strait of Hormuz would remain largely closed. Before the conflict began in February, the waterway handled roughly one-fifth of the world’s oil and liquefied natural gas shipments.
The United States had proposed an immediate end to fighting before opening negotiations on broader issues, including Iran’s nuclear programme.
Despite a ceasefire that took effect in early April, tensions remain high. The United Arab Emirates said on Sunday it intercepted drones launched from Iran, while Qatar and Kuwait reported separate drone-related incidents.
Trump is expected to travel to China on Wednesday, where he is scheduled to meet President Xi Jinping. Iran is expected to be one of the key topics of discussion.
Israeli Prime Minister Benjamin Netanyahu said the conflict was not over and that more work remained to address Iran’s nuclear and missile capabilities.
